Riot Platforms Reports Q2 Loss After Bitcoin Halving
Bitcoin mining firm Riot Platforms reports a total revenue of $70.0 million from the $76.7 million recorded in the same period last year. The drop is due to the Bitcoin halving event in April.
This decrease in revenue is also attributed to a $9.7 million drop in engineering revenues. This was somewhat offset by a $6 million increase in Bitcoin Mining revenue. This highlights the firm’s resilience in its core mining operations despite broader financial challenges.
“The second quarter saw the Bitcoin network ‘halving’ in April of this year, a preprogrammed event whereby the Bitcoin block subsidy received by miners from the network is cut in half every four years,” said Jason Les, CEO of Riot Platforms.
“Despite this reduction in available production for all Bitcoin miners, Riot posted $70.0 million in revenue,” adds Les.
During the second quarter, Riot Platforms produced 844 Bitcoin, a 52% decline from the 1,775 Bitcoin mined during the same period last year.
The reduction is mainly due to the Bitcoin block subsidy ‘halving’ event that occurred in April. Bitcoin halving, an event that occurs approximately every four years, reduces the reward for mining new blocks by half. The most recent halving was on April 19. The halving saw miners’ rewards drop from 6.25 BTC to 3.125 BTC.
This reduced the reward for mining new blocks, coupled with increased network difficulty. These factors have constrained the firm’s Bitcoin output despite operational efforts.
The average cost to mine a single Bitcoin for Riot Platforms increased to $25,327. This is a dramatic rise from $5,734 per Bitcoin in the second quarter of 2023.
This surge in costs is largely due to the block subsidy halving and a 68% increase in the global network hash rate, which
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